Wednesday, October 6, 2010

That's Obama's Fed

Since DeLong and Yglesias didn't get to this one yet...

Tim Fernholz was upset yesterday because the Fed seems to be ignoring the employment portion of its responsibilities, and concludes:
The problem is that right now prominent economists and the Federal Reserve board blithely recognize that a rather substantial chunk of the central bank's congressionally assigned mission is simply ignored. It seems to me that part of the political independence the government has granted the Fed is contingent on it completing all parts of its mission. If it fails to do so, maybe Congress should take that assignment -- and the power that goes with it -- and give it to someone more responsible. 
Sure, Congress has a role in this, as do the people on the Fed board, but isn't there someone he's leaving out?  Say, the person who nominated the current Fed Chair, the Vice-Chair, and one of the other three members?  And, the person who was so slow to act that the remaining spot has been vacant for months, most of those months before any name was submitted to the Senate?  

Barack Obama, as far as we know, has the Fed he wants.  Anyone unhappy with the Fed should direct the bulk of those complaints to 1600 Pennsylvania. 

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